Taxation: Finance Bill 2023 explained to economic operators in the North

The city of Detroit received the director of the Directorate General of Taxes (DGI) on Friday, January 20. Younès Idrissi Kaitouni came to explain the main provisions of the 2023 Finance Law to economic operators in the Region. Operators who don’t have to worry about some of the new features of this LF.

The head of the DGI continues his awareness tour of the key tax measures of the Finance Bill 2023. Last Friday, he was in Tangier to present the new features to local operators. This was during a meeting organized jointly with the local chapter of CGEM as well as chartered accountants from the region.

The exchanges helped operators in the North better understand the changes brought by FL 2023. As everywhere, there is no shortage of questions and even concerns. But the topic remains particularly strategic for those dealing with taxation in this region, perfect for industrial zones and free zones.

During the discussions with Idrissi Kaitouni, issues related to corporation tax (CI), convergence of rates and withholding tax did not arise. And one thing is certain, although the local economic actors have demonstrated diplomacy, not all of them have some concern about these innovations.

Single tax rate 20%
One of the most talked about measures in the North is the state’s desire to abolish exceptional tax measures and move closer to a flat tax rate of 20% in 2026 for all companies with profits of less than 100 CIS. . This will have implications and will require adjustments from local producers. Because the attractiveness policy related to industrial zones allowed certain companies, especially companies operating in export processing zones, to benefit from a number of tax incentives.

Moreover, a number of players in the automotive industry fail to note that national competitiveness in this fast-growing sector is in danger of slowing down. Apart from the convergence of rates, discussions focused on the gradual reduction of tax on income from stocks, shares and similar income, as well as on the basis of the minimum contribution rate.

Financial law in times of crisis
For his part, the head of the DGI highlighted the provisions that, according to him, are part of the post-covid crisis period marked by uncertainties caused by political conflicts. The introduction of the New Development Model (NMD) also contributed to this. Idrissi Kaitouni and his teams, in particular, returned to the pioneering event of the institution of a single professional contribution. The DGI reminds that this is to enable professionals subject to the flat-rate allowance scheme to pay a single tax, which now replaces the flat-rate income tax, business tax and municipal service tax. It also allows them to provide medical coverage. It should be noted that the Tangier-Tetouan-Al Hoceima (TTA) Region is emerging as the second industrial center of Morocco after Casablanca. Moreover, with the exception of large national groups and multinational companies, the economic structure there is dominated by SMEs and SMIs. Moreover, the priority for the regional president of CGEM TTA is given to the survival and health of these small and medium enterprises.

Younes Idrissi Kaitouni
Director General of the General Directorate of Taxes (DGI).

“The Finance Act 2023 sets the pace for implementing the recommendations of the 2019 National Taxation Conference as well as those advocated by the New Model Development (NMD), following a succession of recent Finance Acts since 2020” .

Fair Chief
President of CGEM-TTA

“The purpose of this meeting is to discuss the new features of LF 2023 and bring economic operators of the Region closer to the new tax provisions.”

Nafeh Agurram
TTA Region Chairman of the Regional Council of the Order of Chartered Accountants

“The Finance Bill 2023 is packed with tax measures despite a challenging economic context marked by rising interest rates, inflation and rising energy prices.”

Abdellah Benahmed / ECO Inspirations

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